FED:Toll cuts stake in Shenzhen property firm

Logistics provider
Toll Group
has cut its holding in a Shenzhen property developer while buying an Australian poultry transport business.

Managing director
Paul Little
said it has sold down most of its one-sixth of a stake in Shenzhen Chiwan Petroleum Supply Base (SCP) as the the Chinese business had been moving from developing oil and gas supply operations to industrial property development.

"Our effective interest of 16.6 per cent in SCP is a non-core asset for Toll," Mr Little said.

"The transaction will generate cash proceeds of around $50 million which will further strengthen the Group's balance sheet while having an immaterial impact on current year profit result."

Also, Toll announced it had bought poultry transport provider McLaughlin Freightlines for around $25 million, saying it expected the purchase to be earnings per share positive in its first year.